Momentum, imitation, and learning: evidence from and effects on the U.S. retail industry ; 24th annual international conference, Strategic Management Society, 2004, San Juan, PR

Abstract

We study the occurrence and performance effects of organizational learning in the U.S. retail industry. Six modes of choosing competitive actions are distinguished: momentum, blind imitation, learning from own success, learning from others’ success, risk-related learning, and opportunity-related learning. We find that momentum, blind imitation, and risk- as well as opportunity- related learning are prevalent. Further, the results point to the importance of interorganizational learning. Firms in this industry should have used the past actions of their competitors as a benchmark, but seem to have failed to realize this necessity.